While many lenders will have varying requirements and may demand that a borrower submit different types of documentation, the following should be treated as a guideline of what is required in a pursuing a short sale.
Contact Your Lender Immediately:
You need to make the effort to find the right person responsible for handling a potential short sale. You want to talk to person in charge of loss mitigation for the lender, you want a supervisor's name, the name of the individual capable of making these kinds of decisions.
Submit a Letter of Authorization:
Your lenders will not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, Title Company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. You should include the following information: name, address, loan number, third party agents involved and contact information on both the agents and yourself.
A Preliminary Estimate of Your Lenders Proceeds:
A preliminary HUD-1 settlement statement that indicates the sales price you are under contract for and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your third party agent (realtor, title company or lawyer) should be able to prepare this for you. The bottom line should not indicate any net proceed to the seller.
Your Circumstances, In The Form of a Hardship Letter:
A complete description of the facts that brought you to financially challenging situation and why you have a valid reason for the lender to accept less than full payment. Lenders can understand many circumstances are unavoidable, loss of job, death, divorce, etc., but they are not very compassionate to situations involving dishonesty, misrepresentation or criminal (or criminally negligent) behavior.
A Complete Financial Statement:
Be truthful about your current financial situation and disclose your assets and liabilities. Provide information on savings accounts, money market accounts, stocks or bonds, cash, real estate or anything of tangible value. Your lender will need to be assured that you cannot pay back any shortfall in the short sale transaction.
Proof of Valuation:
Many homeowners caught by the current downturn of the real estate market have lost significant equity in their home. This should be part and parcel as to why you cannot sell your home for enough to pay off the existing lien. You need to substantiate this value to the lender through a proof of valuation. In declining value to the lender you could present a fully completed appraisal, a comparative market analysis (CMA) or a broker’s opinion of value.
Your Purchase Agreement and Listing Agreement:
The lender should want a copy of the executed offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or seller concessions inspections.
If your package is complete, the facts are accurate and the circumstances speak for themselves, the lender will approve your short sale. Within the ongoing communications and negotiations, you should ask that the lender not report any adverse credit references to the credit reporting agencies, although they would be under no obligation to accommodate this request.
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Residential
MLS# 23021895 / Active
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Residential
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Edisto Beach, SC 29438
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This Bay Creek Villa gives you the opportunity to own a redesigned Villa offering a larger living space than other Villas. It provides ample room f...
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Edisto Island, SC 29438
Wyndham Ocean Ridge
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MLS# 23020746 / Active
Multi-bedroom cottage is an enticing villa home, in a gated community. In this quaint villa you will find a cohesive and well thought out kitchen a...
Reduced -$11,000
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Residential
MLS# 23020518 / Active
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Move in ready home. Over 2600sqft home in 1.4 acres lot. Freshly painted, LVP entire flooring and all new fixtures. Can be rezoned for commercial p...
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1226 Pine Siskin Court
Kiawah Island, SC 29455
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Residential
MLS# 23020268 / Active
Rarely does a cottage of this caliber grace the market, offering unparalleled luxury and breathtaking views of the lagoon on Kiawah Island. With ne...
Increase +$5,000
16 Tidewater Lane
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Come build the Holland! This 5-6BR 305-4.5BA has it ALL! Standard features include: Laminate Wood Flooring in main living areas, Wood treads on sta...
14 Tidewater Lane
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MLS# 23020223 / Active
Come build the Lockwood! This 4-6BR 3.5-4BA has it ALL! Standard features include: Laminate Wood Flooring in main living areas, Wood treads on stai...
12 Tidewater Lane
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Come build the Carson! This 4BR 2.5-3.5BA has it ALL! Standard features include: Laminate Wood Flooring in main living areas, Wood treads on stairs...
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Come build the Drayton w/Bonus! This 3BR 2BA Ranch has it ALL! Standard features include: Laminate Wood Flooring in main living areas, Wood treads ...
Increase +$3,000
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Come build the Woodbridge w/Bonus! This 3BR 2BA Ranch has it ALL! Standard features include: Laminate Wood Flooring in main living areas, Wood trea...
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2 Tidewater Lane
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Reduced -$24,600
4020 Crockett Court
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MLS# 23019993 / Active
Like the idea of walking to dinner & a movie? Then 4020 Crockett Court could be the home for you and it will be completed in OCTOBER. HIGHLIGHTS OF...
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717 Central Avenue
Summerville, SC 29483
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MLS# 23019810 / Active
Charming 2 bedroom apartment in the heart of Summerville with flex space below and over 60' of street frontage, on heavily traveled Central Avenue....
Increase +$50,000
3502 Waterway Boulevard
Isle of Palms, SC 29451
Forest Trail
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MLS# 23019797 / Active
Contemporary Lowcountry home with amazing views of the Intracoastal Waterway. Estimated completion December 2024. StThis property is the perfect bl...
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MLS# 23019539 / Active
Living in a popular and prominent city, it is rare for one to find an eloquent condo nestled in a downtown residential neighborhood. One level, fif...
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This is a beautiful open space that can accommodate a number of design plans. Current floor plan has no structural obstacles. Large windows along w...
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